Current issues in finance that affect your lives will be discussed in clear, understandable terms.

How new tax laws will impact on your current earnings, retirement benefits or estate plans is important to YOU.

Affording college for the kids is expensive now. What will it be in the future?

How will you be able to afford it in 14 years when your child is ready? How much do I need to save now to send my son or daughter to a private school or a public institution?

We want to address those issues that concern you.

For specific questions, please email Jeanne at the link below.
 

To determine how long it will take for your savings to double, given a specific rate of return, divide that rate of return into 72. The result is the number of years it will take.

For example:

Your mutual fund account is earning 9%. Assuming that it continues to earn 9%, divide 9 into 72 and you get 8. That means that if your mutual fund account earns 9% for the next 8 years then your account value would double even if you don't contribute another dime!

Given those assumptions: if you were able to deposit $10,000 into an account which earned 9%, in 8 years there would be $20,000.

In 16 years if the rate of return on the mutual funds continued at 9%, the value would be $40,000! WOW!!

That sounds pretty good until you realize that the same rule applied to the rate of inflation can be terrifying!

Over the last 25 years the inflation rate has averaged 4%.

Let's apply the rule... Divide 72 by the rate of inflation, 4%, and you get 18.

To maintain your standard of living... live the way you do today... your income will have to DOUBLE in 18 years just to keep up with inflation!

Think about the number of years you have until retirement, keep in mind the Rule of 72.

If you are 47 and plan to retire at age 65 (and the inflation rate is 4%), your retirement benefits will have to equal twice as much as you are currently earning... just to live the way you do now!
 

Will your savings be enough?
Are you saving enough?
Where can I save to maximize the return?
What investment vehicles are available to me?

Read the Financial Strategy Newsletter next week to learn the answers.